To be a Zupplychain storage provider, a business should be insured for storing third party products so as to protect itself and not invalidate its insurance (this is not the same as insurance for the product being stored). 3PLs, whose main line of business is storage and distribution will be insured to carry out the activity of storing others products. Most other businesses will only be insured for storing their own products. We ask a Zupplychain provider to confirm they are insured.
For insurance for the product being stored, most 3PLs will offer a basic level of cover, usually expressed as £ per tonne, or kilo. Unless the product being stored is heavy and low cost, this is unlikely to fully insure the product. Some 3PLs may offer additional insurance for a premium also. However, it is possible that a user’s current insurer for its day-to-day activities will be the most competitive source of insurance for products in a third party’s warehouse. If the stock being stored at the third party is a small proportion of your total insured stock, it is possible that there will be no or a small premium. Insurance does not generally cover operational damage.
If you have any other questions relating to the search pages – or, indeed, about any aspect of our website, please don’t hesitate to get in contact with us and ask. The Zupplychain community is always here to help!